Is Dogecoin poised for a rally from $0.12 support?

• Dogecoin has experienced a 14.98% decline in the last seven days. 
• Despite the price decline, Doge enjoys low liquidation rates and increased whale activity

Dogecoin [DOGE] has experienced a sharp decline in the last month. Over the last 30 days, Doge has reported a 14.98% price decline and a 7.46% decline in the last seven days.

DOGE was trading at $0.1342, a 1% reduction in the last 24 hours, according to CoinMarketCap.

According to AMBCrypto’s analysis, DOGE is set to stabilize around $0.123. In the short run, DOGE prices will likely consolidate between $0.12 and $0.15.

However, analysis indicates it’s likely to hit $0.17 to $0.2 in a bullish long-run scenario.

Thus, with higher sell-offs, DOGE is likely to test the $0.12 support level, while continued market activity would lead to a breakout above the $0.169 resistance level.

Looking further, the RSI at 36 indicates the possibility of an upcoming bullish run. The indicator shows a potential reversal if the market holds and the RSI rises. Despite the existing bearish trend, future reversal is a possibility.

Equally, data from Coinglass indicates low liquidity levels in the last seven days. On 15th June, DOGE reported meager liquidation rates for both shorts and long positions, each reporting $61.6k and $139.2k, respectively.

Short positions report $105.7k at press time, while long positions have $1.07 million. Short and long positions liquidation shows that the market is consolidating at the current rates while enjoying stability.

However, short-position investors are in more favorable conditions. This has resulted in increased accumulation for both sides and positive future price sentiment.

In detail, according to Santiment, Whales with over $5 million are increasingly accumulating their assets. At press time, over 52% of assets are accumulated by whales with over $5 million.

The accumulation by whales and reduced liquidation implies positive market sentiment.

DOGE market sentiment

DOGE has continually declined in the past seven days. However, investors remain optimistic, with increased accumulation by whales of over $5 million and reduced liquidation.

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If a negative market sentiment persists, DOGE will need to test the local weak support level of around $0.12.

However, if the selling pressure persists, the market will get a reversal and breakout off the resistance level of around $0.169.